03/30/2016 08:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings(s): | |
| Professional Teaching Practices Commission (ptpc) | |
| State Board of Education and Early Development | |
| SJR2 | |
| HB357 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SJR 2 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HB 357 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE EDUCATION STANDING COMMITTEE
March 30, 2016
8:04 a.m.
MEMBERS PRESENT
Representative Wes Keller, Chair
Representative Liz Vazquez, Vice Chair
Representative Jim Colver
Representative Paul Seaton
Representative David Talerico
Representative Harriet Drummond
Representative Ivy Spohnholz
MEMBERS ABSENT
All members present
OTHER MEMBERS PRESENT
Representative Lora Reinbold
COMMITTEE CALENDAR
CONFIRMATION HEARINGS(S):
Professional Teaching Practices Commission (PTPC)
Frances Roberts - Homer
- CONFIRMATION(S) ADVANCED
State Board of Education and Early Development
Rebecca Himschoot - Sitka
- CONFIRMATION(S) ADVANCED
SENATE JOINT RESOLUTION NO. 2
Proposing an amendment to the Constitution of the State of
Alaska relating to contracting state debt for postsecondary
student loans.
- MOVED SJR 2 OUT OF COMMITTEE
HOUSE BILL NO. 357
"An Act relating to the Board of Education and Early
Development; and relating to the Board of Regents of the
University of Alaska."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SJR 2
SHORT TITLE: CONST. AM: G.O. BONDS FOR STUDENT LOANS
SPONSOR(s): SENATOR(s) MACKINNON
01/21/15 (S) PREFILE RELEASED 1/9/15
01/21/15 (S) READ THE FIRST TIME - REFERRALS
01/21/15 (S) STA, EDC, FIN
02/10/15 (S) STA AT 9:00 AM BUTROVICH 205
02/10/15 (S) Moved SJR 2 Out of Committee
02/10/15 (S) MINUTE (STA)
02/11/15 (S) STA RPT 3DP 2NR
02/11/15 (S) DP: COGHILL, MCGUIRE, WIELECHOWSKI
02/11/15 (S) NR: STOLTZE, HUGGINS
02/24/15 (S) EDC AT 3:30 PM BUTROVICH 205
02/24/15 (S) Heard & Held
02/24/15 (S) MINUTE (EDC)
03/12/15 (S) EDC AT 3:30 PM BUTROVICH 205
03/12/15 (S) Moved SJR 2 Out of Committee
03/12/15 (S) MINUTE (EDC)
03/13/15 (S) EDC RPT 3DP 1NR
03/13/15 (S) DP: DUNLEAVY, STEVENS, HUGGINS
03/13/15 (S) NR: GARDNER
03/26/15 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/26/15 (S) Heard & Held
03/26/15 (S) MINUTE (FIN)
04/09/15 (S) FIN AT 1:30 PM SENATE FINANCE 532
04/09/15 (S) Moved SJR 2 Out of Committee
04/09/15 (S) MINUTE (FIN)
04/10/15 (S) FIN RPT 3DP 3NR
04/10/15 (S) DP: MACKINNON, BISHOP, HOFFMAN
04/10/15 (S) NR: KELLY, DUNLEAVY, OLSON
04/13/15 (S) TRANSMITTED TO (H)
04/13/15 (S) VERSION: SJR 2
04/13/15 (H) READ THE FIRST TIME - REFERRALS
04/13/15 (H) EDC, JUD, FIN
03/23/16 (H) EDC AT 8:00 AM CAPITOL 106
03/23/16 (H) Heard & Held
03/23/16 (H) MINUTE (EDC)
03/30/16 (H) EDC AT 8:00 AM CAPITOL 106
BILL: HB 357
SHORT TITLE: BOARD OF ED/BOARD OF REGENTS MEMBERS
SPONSOR(s): REPRESENTATIVE(s) VAZQUEZ
02/24/16 (H) READ THE FIRST TIME - REFERRALS
02/24/16 (H) EDC, FIN
03/28/16 (H) EDC AT 8:00 AM CAPITOL 106
03/28/16 (H) Scheduled but Not Heard
03/30/16 (H) EDC AT 8:00 AM CAPITOL 106
WITNESS REGISTER
FRANCES ROBERTS, Appointee
Professional Teaching Practices Commission (PTPC)
Homer, Alaska
POSITION STATEMENT: Testified as appointee to the Professional
Teaching Practices Commission (PTPC).
REBECCA HIMSCHOOT, Appointee
State Board of Education and Early Development
Sitka, Alaska
POSITION STATEMENT: Testified as appointee to the State Board
of Education and Early Development.
DIANE BARRANS, Executive Officer
Alaska Student Loan Corporation
Executive Director
Postsecondary Education Commission
Department of Education and Early Development (EED)
POSITION STATEMENT: Responded to questions during the hearing
on SJR 2.
STERLING GALLAGHER
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SJR 2.
CHRIS CHRISTENSEN, Associate Vice President
State Relations
University of Alaska (UA)
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to HB 357.
ACTION NARRATIVE
8:04:29 AM
CHAIR WES KELLER called the House Education Standing Committee
meeting to order at 8:04 a.m. Representatives Keller, Vazquez,
Colver, Seaton, and Talerico were present at the call to order.
Representatives Drummond and Spohnholz arrived as the meeting
was in progress.
^CONFIRMATION HEARINGS(S):
CONFIRMATION HEARINGS(S):
8:05:05 AM
CHAIR KELLER announced that the first order of business would be
advancement of appointments to the Professional Teaching
Practices Commission (PTPC), and the State Board of Education
and Early Development.
^Professional Teaching Practices Commission (PTPC)
Professional Teaching Practices Commission (PTPC)
8:05:24 AM
FRANCES ROBERTS, Appointee, Professional Teaching Practices
Commission (PTPC), described herself as a UA graduate, with a
masters in mathematics, from Montana State University, which she
has taught for 22 years. She said re-appointment to the PTPC
allows her to continue to give back to her community.
8:07:22 AM
REPRESENTATIVE SEATON asked for a description of how the
commission works.
The committee took an at-ease from 8:07 a.m. to 8:11 a.m.
8:11:25 AM
MS. ROBERTS outlined the duties of the commission, which is
focused on the ethical behavior of teachers. When a report is
received, the information is reviewed to determine whether the
report represents a viable complaint or is dismissible. A
viable complaint undergoes a process to determine the
significance of the statutory violation, address all concerns,
and formulate consequences.
8:13:57 AM
REPRESENTATIVE COLVER asked how the legislature might help
teachers to do a better job, in light of the state and federal
mandates that encroach on classroom time.
MS. ROBERTS predicted that the changes in the testing
regulations, under the ESSA reauthorization, that may represent
an improvement. She expressed support for state controlled
assessment measures; however, the federally mandated testing,
and the time required to ensure compliance, has not been
particularly helpful, she opined.
8:15:44 AM
CHAIR KELLER asked if the PTPC hires a person to specifically
receive and check into the complaints.
MS. ROBERTS responded that the PTPC is fully funded by the
teacher certification process, is a self-sustaining program, and
retains one employee. Currently the position is filled by a
former educator, Jim Seitz, who has taught in the public
schools, as well as the university sector. He is well versed in
Alaskan education issues, she added.
8:16:55 AM
REPRESENTATIVE VAZQUEZ moved to advance the confirmation of
Frances Roberts, appointee to the Professional Teaching Practice
Commission, to a joint session of the House and Senate for
consideration. Without objection the name of Frances Roberts
will be advanced.
REPRESENTATIVE VAZQUEZ reminded members that signing the reports
regarding appointments to boards and commissions in no way
reflects individual members' approval or disapproval of the
appointees, and that the nominations are merely forwarded to the
full legislature for confirmation or rejection.
^State Board of Education and Early Development
State Board of Education and Early Development
8:17:18 AM
CHAIR KELLER continued with the appointment of Rebecca Himschoot
to the State Board of Education and Early Development, noting
the response in the committee packet that was requested at a
previous hearing [House Education Standing Committee 3/18/16].
REPRESENTATIVE VAZQUEZ moved to advance the confirmation of
Rebecca Himschoot, appointee to the State Board of Education and
Early Development, to a joint session of the House and Senate
for consideration. Without objection the name of Rebecca
Himschoot will be advanced.
8:18:32 AM
REPRESENTATIVE COLVER asked what goals, objectives and data
would represent a meaningful assessment for the students of
grades 3-10, in reforming the testing emphasis and priorities
that the state anticipates.
REBECCA HIMSCHOOT, Appointee, State Board of Education and Early
Development, said the high stakes testing has been removed, but
it is still important to obtain assessment data to measure how
students are progressing. The effectiveness of classroom
content must be charted and feedback is required to understand
areas that may need to be bolstered. An understanding for how
to best support students individually and on a group basis, as
well as a means for identifying schools in need of assistance,
are areas that require scrutiny. Student progress assessments
should also be comparable on statewide and national levels.
REPRESENTATIVE COLVER asked about deficiencies found in the
current Alaska measures of progress (AMP) test.
MS. HIMSCHOOT responded that her contact with AMP has been
limited, however, the data results have provided broad stroke
assessments, and not the refined information necessary to
address specific individual or group needs.
REPRESENTATIVE COLVER acknowledged that the lack of usable
student data is an issue, and said he will look forward to her
directing the board towards a means of obtaining more specific
data.
MS. HIMSCHOOT agreed with the member's concerns, and said the
districts and the department appear to be on the same page.
SJR 2-CONST. AM: G.O. BONDS FOR STUDENT LOANS
8:23:41 AM
CHAIR KELLER announced that the next order of business would be
SENATE JOINT RESOLUTION NO. 2, Proposing an amendment to the
Constitution of the State of Alaska relating to contracting
state debt for postsecondary student loans.
8:24:38 AM
REPRESENTATIVE VAZQUEZ noted that the corporation has enough
cash to meet its loan obligations. She directed attention to
the committee packet handout titled, "State of Alaska
Comprehensive Annual Financial Report, Fiscal Year Ended June
30, 2015," issued by the Division of Finance, Department of
Administration, and the attached page 252, to review the column
headed, Alaska Student Loan Corporation. The report provides
that the assets of the corporation show cash and investments
totaling $35 million, with a bottom line total net position of
nearly $221 million. Thus, she surmised that the corporation
doesn't appear to be strapped for cash and unable to fund loans.
The costs reported during the previous hearing of SJR 2
[3/23/16], were about $30 million. Thus, having to enter the
bond market and making a change to the constitution to access
that market, is not warranted, she opined. She questioned
whether there might not be another avenue to explore, which
would prove less draconian than changing the constitution.
8:27:48 AM
DIANE BARRANS, Executive Officer, Alaska Student Loan
Corporation, Executive Director, Postsecondary Education
Commission, Department of Education and Early Development (EED),
responded that at issue is whether the commission can meet the
volume of new loans, as well as the refinance requirements of
existing, loans. The estimated volume of the combination for
these two loan categories, in the first year, could exceed $40
million. She reported that, minus operating costs, the
corporation's capacity does not meet this level of demand.
Speaking to the question of possible alternatives to using GO
debt, she said the state, since 2009, has provided two different
types of supports to the corporation. One was to enable the
Department of Revenue (DOR) to serve as a stand-by bond purchase
provider; an agreement whereby the corporation can access the
market using the liquidity support from the state. The
arrangement ensures that, in the event the corporation defaults
on the obligation, the state will buy the outstanding bonds. In
structuring that deal, she reported, the corporation was able
to, at a relatively low cost, secure a liquidity provider letter
of credit, but only on a standby basis. Thus, the loan
structure allows access to the market, but it doesn't afford the
cost reducing benefits that the GO bonds provide. The other
type of assistance that the state offered was authorization in
statute, allowing DOR to extend a $100 million loan, of which
$70 million has been used. It was structured as a bridge loan,
which is not a viable long term strategy for meeting loan
demands or for achieving the low cost interest rates that the
corporation would like to offer to Alaskans.
8:31:18 AM
REPRESENTATIVE COLVER inquired whether the revenue bonds have
been leveraged to finance student loans.
MS. BARRANS responded yes, and added that it has been the
practice since 1988; however, with the change in the market it
has become a costly method.
REPRESENTATIVE COLVER asked about the point spread between the
revenue bonds versus GO financing.
MS. BARRANS answered that, if the state maintains its AAA credit
rating, the spread would be about 120 basis points, but if the
rating drops to AA it would be about 97 basis points.
8:32:51 AM
REPRESENTATIVE DRUMMOND asked for an average amount of an Alaska
student loan.
MS. BARRANS estimated $6,000, and offered to provide further
information. The allowed maximums have recently been raised,
she said, and predicted that the average total will also
increase.
REPRESENTATIVE DRUMMOND opined that, estimating an $11,000 loan
and considering 11,000 students, $220 million doesn't go very
far. She conjectured that, should the Performance Scholarship
fund be jeopardized, the corporation will see an increase in
loan applications.
8:34:20 AM
CHAIR KELLER noted that typically a getting out the vote
investment will be made on either side of a ballot issue and
asked who the corporation anticipates will get behind promoting,
as well as opposing this legislation.
MS. BARRANS explained that when a state agency puts an item on a
ballot the advocacy is not through the agency. Media relations
would allow factual statements to be broadcast, but there is no
expectation for promotional efforts.
CHAIR KELLER asked if there are any groups that might pursue
advertising to advocate for or against the measure.
MS. BARRANS said there is no expectation of any campaigns being
waged.
8:37:01 AM
REPRESENTATIVE VAZQUEZ returned to the testimony predicting a
surge in loan applications and asked what information the
prediction is based on.
MS. BARRANS replied that a number of moving pieces effect loan
demand. The commission expects an increase in enrollment levels
at the university in the coming years, and tuition costs are
also expected to increase.
8:38:21 AM
STERLING GALLAGHER stated opposition to SJR 2, and described a
personal history of financial work within the state, including
commissioner of the DOR and underwriting state bonds. He said
the Student Loan Corporation was designed around cash flow, and
represents the weakest type of loan that the state can make, due
to the lack of collateral. One thing that does make this type
of loan work is the fact that it cannot be discharged through
bankruptcy. The national average student loan is $60,000, with
high end profession graduate debt at about $160,000. Because
the commission is designed around cash flow, he opined, other
means could be implemented for loan purposes and GO bonds
reserved for construction programs and emergency situations.
The loan program has been soundly run, he offered, but a young
person carrying heavy student loan debt can become a socio-
economic burden as their lives change. The national concern for
the level of systemic student debt is on the fore burner, and
there is pressure to change bankruptcy laws in order to
accommodate the fallout, which in turn could affect the states
credit rating. Collateral versus the states moral obligation
would be a better approach, he suggested, and returned to the
figures from the previously cited financial report to state that
the need for further assets is appropriately noted. However,
ways and means should be accomplished by drawing on other,
sufficiently collateralized, state loan balances and programs.
8:45:40 AM
CHAIR KELLER asked about the current debt load carried by the
state and its rating on Standard and Poor's.
MR. GALLAGHER said Alaska has about $600 million in general
obligation debts, and opined that, overall, the state is in good
shape.
8:47:35 AM
REPRESENTATIVE COLVER asked for a general statement of the
outlook for GO bonds in the state, and whether SJR 2 appears to
present any problem. A state/national disaster would require GO
bonds, he noted, and asked about other future needs.
MR. GALLAGHER responded that the state has ample flexibility at
this point and federal matching funds continue to prove helpful.
He suggested that other means could be employed to meet the
current financial crisis in the state.
8:51:32 AM
REPRESENTATIVE SEATON asked what loans could be appropriated to
the commission, without compromise.
MR. GALLAGHER answered that the fishermen loans would be one,
with about $130 million collaterally extended on quality assets.
REPRESENTATIVE SEATON surmised that fishermen loans are
collateralized using fishing vessels and questioned how much
money could actually be made available. If the loans were based
on the payment receipts, it seems that it may be insignificant,
he opined.
MR. GALLAGHER responded that other agency loans may be based
more on cash flow and it's the quality of the cash flow that
should be considered.
8:53:46 AM
REPRESENTATIVE VAZQUEZ asked if there is a link connecting the
fishing loans, as made by the Division of Investments,
Department of Commerce, Community & Economic Development
(DCCED), and the Alaska Student Loan Corporation program.
MR. GALLAGHER responded no; however the fishing program has $60
million in cash, in the till, earning about a half of a percent.
Thus, extending that cash to cover $130 million in loans would
be an appropriate leverage of funds.
REPRESENTATIVE VAZQUEZ clarified that the suggestion is to
direct fishing loan funds to the commission.
MR. GALLAGHER responded that, instead of appropriating cash to
the program, appropriate the loans.
8:55:04 AM
REPRESENTATIVE COLVER stated his understanding of the scenario
being described and said it utilizes the cash flow for
reinvestment.
MR. GALLAGHER answered yes, and said it's a smarter use of money
and doesn't consume the available balances.
8:56:29 AM
The committee took an at-ease from 8:56 a.m. to 8:57 a.m.
8:57:11 AM
REPRESENTATIVE COLVER commented that amending the constitution
is a weighty affair. He said he does not object to advancing
the bill for further scrutiny and debate in the next committee
of referral.
8:58:42 AM
REPRESENTATIVE TALERICO clarified that the members are not
casting a vote to amend the constitution by passing this
legislation out of committee. He said many facets will come
into play as the bill advances forward. The voting public may
be called upon for the final determination and opined that GO
bonds may be the best financing alternative. He said he is
neutral on the bill, but appreciates opportunities to put
decisions before the voters.
9:00:24 AM
REPRESENTATIVE SEATON said student loan debt is a big problem
nationwide, primarily due to the high interest rates that
accumulate and compound debt, even as graduates enter the work
force. Lowering the student loan interest rate could be very
beneficial, he opined, however, using money from other programs,
such as the fishing vessel program, presents a concern.
9:02:10 AM
CHAIR KELLER opined that the committee has done its due
diligence.
9:02:42 AM
REPRESENTATIVE VAZQUEZ commented that the student loan program
is critical, especially in light of the tuition rate increases
that may be imposed. She maintained her concern for amending
the constitution, Article 9, and said that other mechanisms
would be more appropriate.
9:04:40 AM
REPRESENTATIVE TALERICO moved to report SJR 2, 29-LS0010\W out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, SJR 2 was
reported from the House Education Standing Committee.
9:05:02 AM
The committee took a brief at-ease at 9:05 a.m.
HB 357-BOARD OF ED/BOARD OF REGENTS MEMBERS
9:05:13 AM
CHAIR KELLER announced that the final order of business would be
HOUSE BILL NO. 357, "An Act relating to the Board of Education
and Early Development; and relating to the Board of Regents of
the University of Alaska."
9:07:42 AM
REPRESENTATIVE VAZQUEZ described HB 357, paraphrasing from the
sponsor statement, which read as follows [original punctuation
provided]:
House Bill 357 places two legislators on the state
Board of Education and Early Development and two
legislators on the Board of Regents for the University
of Alaska.
House Bill 357 affords improved communications between
the legislature and each respective board. It opens
dialogue, allows for a better understanding of
successes and challenges, and provides insight into
areas within each organization.
Having two legislatures serve as non-voting members on
each board will allow the legislature to be better
informed and more knowledgeable of each board, assists
in the legislative process to support the goals and
objectives of each organization, and gives improved
insight to each board on the legislative process.
House Bill 357 will build the framework to shape a
strong future for Alaska's educational needs.
9:08:52 AM
REPRESENTATIVE VAZQUEZ emphasized that the legislative board
members would be non-voting, and acknowledged the concern
regarding the possible violation of the separation of powers.
The Legislative Legal Services counsel provided an opinion for
review but may have overlooked AS 24.05.050, she said, and read
the statute as follows:
Sec. 24.05.050. Membership on boards and commissions.
A member of the legislature may serve on a board or
commission of the state government only if the
membership of legislators on the board or commission
is specifically authorized by law.
9:12:55 AM
REPRESENTATIVE VAZQUEZ said that in addition there are
legislators currently serving on 13 boards and commissions,
which include: Alaska Aerospace Corporation seats a senator and
a representative; Alaska Justice Commission seats a senator and
a representative; Governor's Council on Disabilities and Special
Education seats a representative; State Council on Education
Opportunities for Military Children seats a senator; Citizens
Advisory Commission on Federal Lands in Alaska seats a senator
and a representative; State Council for Interstate Adult and
Juvenile Offender Supervision seats a senator; Knik Arm Bridge
and Toll Authority Board of Directors seats a senator and a
representative; Alaska Native Language Preservation Advisory
Council seats a senator and a representative; Pacific States
Marine Fisheries Commission seats a senator; Alaska Commission
on Postsecondary Education seats a senator and a representative;
Statewide Suicide Prevention Council seats two senators and two
representatives; the Alaska Tourism Marketing Board seats a
senator and a representative; and the now defunct Alaska Health
Care Commission, seated a senator and a representative;. There
are also three commissions and committees on which the governor
serves, and the lieutenant governor serves on one commission.
Seating the legislators as non-voting members satisfies the
concern regarding separation of powers, she opined. These
members will be important liaisons for the legislature as a
whole, and given the 90 day session, will facilitate further
understanding during the interim.
9:14:00 AM
CHRIS CHRISTENSEN, Associate Vice President for State Relations,
University of Alaska (UA), stated opposition to HB 357, and said
the intent for improved communications is commendable. However,
having legislative members would create strong grounds for legal
challenges to specific actions that are taken by the board. He
noted that legislators and staff are welcomed to attend board
meetings. In 2015, he reported, the regents met 20 times. Five
of the meetings were multi-day affairs that entertained hours of
public testimony. Often legislators appear at these meetings
and frequently testify. The seating of legislators, however,
would subject board action to legal challenge for three specific
reasons: violation of separation of powers between the
executive and legislative branches; violation of the
constitutional prohibition on dual office-holding by
legislators; and inconsistency with the stated intent of the
framers of the constitution to insulate the university from
politics.
9:15:41 AM
MR. CHRISTENSEN, addressing the concern for separation of
powers, cited the relevant constitutional provision as being
Article 7 Sec. 3, a clear and unambiguous statement, which reads
as follows:
SECTION 3. Board of Regents. The University of Alaska
shall be governed by a board of regents. The regents
shall be appointed by the governor, subject to
confirmation by a majority of the members of the
legislature in joint session. The board shall, in
accordance with law, formulate policy and appoint the
president of the university. He shall be the executive
officer of the board.
MR. CHRISTENSEN opined that the appointment of regents by the
legislature would directly encroach on the governor's exclusive
authority, under the constitution, to appoint board members.
9:16:12 AM
MR. CHRISTENSEN, addressing the concern for dual office-holding,
cited Article 2 Sec. 5, which reads as follows:
SECTION 5. Disqualifications. No legislator may hold
any other office or position of profit under the
United States or the State. During the term for which
elected and for one year thereafter, no legislator may
be nominated, elected, or appointed to any other
office or position of profit which has been created,
or the salary or emoluments of which have been
increased, while he was a member. This section shall
not prevent any person from seeking or holding the
office of governor, secretary of state, or member of
Congress. This section shall not apply to employment
by or election to a constitutional convention.
MR. CHRISTENSEN reported that the Alaska Supreme Court has ruled
that this section should be read and enforced literally. The
position of regent is a constitutional office. A legislator
appointed to serve as regent would, thus, clearly hold two
offices in violation of this section. A ruling in 1976 stated
that judges, a governor, and legislators, may not serve as a
regent while at the same time retaining such office.
9:17:09 AM
MR. CHRISTENSEN, addressing the concern for inconsistency with
the stated intent of the framers of the constitution to insulate
the university from politics, said that placing legislators on
the board inevitably injects politics directly into the internal
operations of the university. The constitutional convention
hosted debate to separate partisan politics from education in
general, and specifically from the university. For example,
during the framers debate on the provision that creates the
executive branch, concerns were raised regarding the appropriate
place for the university in the new state government. Concerns
were repeatedly expressed in terms of the need to insulate the
university from politics. He cited a 2007 opinion provided by
an attorney general, which he summarized as follows:
After reviewing the minutes of the convention, it was
fair to draw two conclusions: the framers intended to
create a very strong governor with full appointive
power, but that, despite the strong governor model,
the convention never the less intended to insulate the
university from politics, including from the governor.
9:18:15 AM
MR. CHRISTENSEN said that placing legislators on the board would
be the exact opposite of insulating the university from
politics, and serve to insert legislative politics into the
internal decision making. The legislators hold the ultimate
authority over the university, but that authority is meant to be
exercised in the confines of the Capitol through the budget and
bill processes. He maintained that the framers of the
constitution worked to create these protections. A seated, non-
voting legislator would influence decisions, he opined, and said
voting is not the only means by which a member of a public body
participates or influences decisions of that public body. Even
as the committee debates the bill proposed today, the debate
itself will influence the outcome of the final decision on the
legislation. The executive branch ethics act, to which all
regents are subject, states:
Refraining from voting is not sufficient to avoid
taking official action. Advice, participation, or
assistance is enough.
MR. CHRISTENSEN stressed that under existing Alaskan law mere
participation by board members is enough to constitute official
action, even when not voting.
9:20:09 AM
MR. CHRISTENSEN referred to the boards and commissions, which
seat legislators, and said statutes do not override the language
of the constitution. He pointed out that the board of regents
is one of only four constitutional boards. The boards and
commissions listed earlier by Representative Vazquez were
created under statute, by the legislature, with enabling
legislation to allow for that service/seating. He underscored
the significance of the regents being a constitutional board,
and said it often takes controversial actions, such as tuition
increases, allocation of declining budgets between campuses and
programs, law suits filed/defended, transactions of investment
bonds and real estate, and hiring a president. Unhappy parties
may, and have, brought legal suit challenges to the board for
reasons such as the ones named, he reported. One significant
power of the board, which is especially relevant at this time,
is the power to reduce or discontinue academic programs and the
power to declare financial exigency. These actions permit the
university to reduce faculty and staff without the normal
constraints or notice periods that are ordinarily required by
contracts, law, or regulation. People dissatisfied with
decisions in this area will seize on any uncertainty regarding
the board's authority and use that uncertainty to delay or
disrupt necessary actions. Litigation often ensues during
aggressive, reorganizational periods, which is what the
university is currently undergoing to meet budgetary demands.
During the financial crash that occurred in the 1980's the
university underwent a restructuring phase, absorbing the
community campus system, which resulted in significant, lengthy
litigation, which was sustained by a faculty union. The
uncertain legality of seating legislators on the board will
provide fodder for opponents of other actions; claim could be
brought due to this technicality versus actual merit. Argument
would be made that the disagreeable action taken by the board
was illegal because some members of the board were illegally
seated. The risk of this type of technical challenge outweighs
any benefits of increased communication.
9:23:45 AM
MR. CHRISTENSEN underscored the importance for improved
communication, and offered examples of how that might be handled
without legislators being seated or enactment of additional
legislation. Inner branch advisory commissions exist throughout
the state, some are university commissions and seat legislators.
When President Jim Johnson assumed office, in 2015, he created
the Alaska Higher Education Roundtable, for the purpose of
advising him, and the invited membership included business
leaders as well as the Alaska House of Representatives and State
Senate education and finance committee chairs.
9:24:51 AM
REPRESENTATIVE COLVER asked for the names of the four boards
established by order of the constitution.
MR. CHRISTENSEN responded: University of Alaska Board of
Regents, the Judicial Council, the Commission on Judicial
Conduct, and the local boundary [commission].
9:25:26 AM
REPRESENTATIVE DRUMMOND asked when the regent meetings are held.
MR. CHRISTENSEN answered that 5 multi-day meetings are held in
February, April, June, September, and December. In addition 15
single day meetings are held throughout the year. The multi-day
meetings are held on the three different main campuses, and the
single day meetings are often accomplished via
telecommunications to minimize travel costs.
9:26:27 AM
CHAIR KELLER opined that the university appears to hold a low
opinion of the legislature. He suggested that the board would
be aware of the political presence and any undue partisan
concerns would be identified and managed appropriately. Also,
he questioned whether there are constitutional prohibitions for
seating a legislator.
9:28:15 AM
MR. CHRISTENSEN cited the roundtable invitation to the chair and
his colleagues.
CHAIR KELLER opined on the difference of attending a roundtable,
philosophical discussion versus sitting with a decision making
body. He acknowledged the concerns for possible complications
and enhancement as an invitation for litigation; however, that
may not have been tested and remains a theory.
MR. CHRISTENSEN agreed that policy making bodies and advisory
bodies are very different, and it's that distinction which the
opinions of attorneys general have pointed towards when
considering the dual office holding and separation of powers
provisions, as well as the insertion of politics beyond the
oversight level of the Capitol. The constitution states that
the governor shall appoint, and the use of the term "shall"
would be held in court as a limitation, he predicted.
CHAIR KELLER maintained that it hasn't been tested in court.
MR. CHRISTENSEN reiterated that a number of attorneys general
have issued and held the same opinion for over 40 years that
serving on a non-advisory board violates the dual office-holding
provision, as well as the separation of powers provision. One
Alaska Supreme Court reading cautions close adherence to the
dual office-holding provision, with allowances made strictly for
military service and service as a member of a constitutional
convention. The court has said that, because these two
exceptions are made, they are to be held to without expansion.
This is a similar provision as is written in the U.S.
Constitution and 45 other states, where the topic has undergone
extensive litigation. He agreed to provide copies of the
opinions to the committee.
9:31:34 AM
REPRESENTATIVE VAZQUEZ asked whether the constitution prohibits
legislators from serving on the Board of Regents.
MR. CHRISTENSEN opined that it's difficult to confine some
responses to a non-elaborated yes or no, and said "I believe
that yes it does, if I were to limit it to one of those two
words."
REPRESENTATIVE VAZQUEZ said, "And that is your interpretation."
MR. CHRISTENSEN responded, "It's also the interpretation of the
attorney general going back over 40 years."
REPRESENTATIVE VAZQUEZ asked whether statute prohibits
legislators from serving on the Board of Regents.
MR. CHRISTENSEN answered no, because the constitution overrides
statute, and the concern is specifically addressed in the
constitution.
REPRESENTATIVE VAZQUEZ pointed out that state statute allows
members to sit on 13 other boards.
MR. CHRISTENSEN explained that the boards, previously named,
were established by legislation. Some are disallowed, he added,
and said the ones that are allowed do so primarily because they
have not been tested in court. The Board of Regents is held
differently than any of those agencies. He reiterated that
given the law of unintended consequences, if a union takes issue
with any action taken by the Board of Regents and the court
upholds that a seated member was serving in violation, it's
conceivable that legislators may be unseated from the other
boards and commissions.
9:34:40 AM
REPRESENTATIVE VAZQUEZ surmised that distinguishing between a
voting versus non-voting member is a factor and the objection is
to the mere legislative presence.
MR. CHRISTENSEN restated that influence occurs during debate,
thus constituting official action.
REPRESENTATIVE VAZQUEZ maintained that every bureaucracy has its
own politics.
MR. CHRISTENSEN agreed, and said that is why the framers worked
to insulate facets of politics from the Board of Regents.
9:36:55 AM
CHAIR KELLER closed public testimony.
9:37:18 AM
REPRESENTATIVE SEATON referred to the committee packet and the
three page Legal Services memorandum, dated 3/26/16, with the
subject "Constitutionality of HB 357 (Work Order No. 29-
LS1520\A), issued by Kate S. Glover, Legislative Counsel, and
said it covers the topic of advisory board versus executive
action, as well as a detailed explanation of the dual office-
holding prohibition, contained in Article 2, Section 5 of the
state constitution.
9:39:15 AM
CHAIR KELLER commented that the issue of whether politics should
be involved, and avoidance for including legislators on any
board or council is an undefined, overused term to avoid
interaction by the legislature. He opined that this puts the
legislature at a disadvantage, despite the members being elected
officials representing constituents. Partisan politics should
not be brought to bear, he opined, and said:
The role of a legislator is much more than that - it's
one of communicating and interacting and, frankly,
debate. Debate is a way to get to the truth.
9:41:14 AM
REPRESENTATIVE SPOHNHOLZ expressed concern of politics entering
into the decisions of the university. Legislative participation
appears to be welcomed by the regents; however, a non-voted
legislative member would exert an element of influence through
the act of participating. Additionally, the means by which the
legislators would be selected, is in itself a political action.
The bill removes a level of insulation that is important in
ensuring a separation of power. The intent for improving
communications is commendable, but there may be other vehicles
to accomplish that end. The separation of bodies, as outlined
in the constitution may be jeopardized by HB 357, and said it's
naïve to think that the bill would not inject politics into the
deliberations of the Board of Regents.
9:45:29 AM
REPRESENTATIVE DRUMMOND said that, as a member of the Anchorage
Municipal Assembly, she was required to resign her seat in order
to assume her position at the legislature. She reviewed the
regent's 2016 schedule: 15 single day meetings and 5 multi day
conferences. In order for a legislator to participate,
especially during a 90 day legislative session, the time
constraints could prove to be prohibitive and possibly
disruptive to the schedule. However, she pointed out,
legislative members are not precluded from auditing board
meetings.
CHAIR KELLER announced HB 357 as held over.
9:48:18 AM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 9:48 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SJR2 version A.pdf |
HEDC 3/30/2016 8:00:00 AM |
SJR 2 |
| SJR 2 Sponsor Statement.pdf |
HEDC 3/30/2016 8:00:00 AM |
SJR 2 |
| SJR2 Fiscal Note OOG-DOE 3-18-2016.pdf |
HEDC 3/30/2016 8:00:00 AM |
SJR 2 |
| SJR 2 Letter of Support-University of Alaska.pdf |
HEDC 3/30/2016 8:00:00 AM |
SJR 2 |
| SJR 2 Letter of Support-Juneau Chamber of Commerce.pdf |
HEDC 3/30/2016 8:00:00 AM |
SJR 2 |